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ITC Infotech to buy a portion of Nasdaq-listed PTC’s services business

PTC and ITC Infotech announced the agreement to accelerate customer digital transformation initiatives, focused on the adoption of PTC’s industry-leading Windchill product lifecycle management software as a service (SaaS), according to a release.

The new business unit of ITC Infotech will combine PLM professional services experts from both the companies as a part of an agreement.
The new business unit of ITC Infotech will combine PLM professional services experts from both the companies as a part of an agreement.

ITC Infotech, a wholly-owned subsidiary of diversified conglomerate ITC, on Friday said it will acquire a portion of Nasdaq-listed PTC’s product lifecycle management (PLM) implementation services business and create a new business unit of the company, called DxP Services.

The new business unit of ITC Infotech will combine PLM professional services experts from both the companies as a part of an agreement.

PTC and ITC Infotech announced the agreement to accelerate customer digital transformation initiatives, focused on the adoption of PTC’s industry-leading Windchill product lifecycle management software as a service (SaaS), according to a release.

The agreement will strengthen the 20-year strong alliance between the two companies to accelerate digital transformation initiatives with global customers through combined professional service experts.

This pact is expected to take forward the Kolkata-based conglomerate’s chairman & managing director Sanjiv Puri’s vision of ITC Next to create value accretive vectors of growth in strategic areas.

Notably, at ITC’s first ever institutional investors and financial analysts meet in December last year, Puri had said the conglomerate was open to the possibilities of listing of ITC Infotech on the bourses.

Sudip Singh, managing director and chief executive, ITC Infotech, said as a global technology services and solution provider, the company shares a common goal with partner PTC – to enable customers to embrace SaaS as a cornerstone of their digital transformation strategies.

“PTC and ITC Infotech have a proven and trusting alliance formed over 20 years working together for the benefit of our mutual customers. The creation of DxP Services will take our relationship to a whole new level and will enable PTC customers to transform the way they adopt technology in the distributed, secure, and agile workplace of the future,” Singh added.

“It has long been PTC’s strategy to build a partner ecosystem that brings to bear the expertise and capacity of systems integrators to drive business transformation and technology adoption across our global customer base,” said Jim Heppelmann, president & CEO, PTC. Together with ITC Infotech, PTC is creating a specialised team to unlock the potential of its Windchill services business and accelerate manufacturers’ ability to realise the benefits of SaaS, such as accessibility, security, and a lower total cost of ownership, Heppelmann added.

During the financial year 2020-21, ITC Infotech’s consolidated total income grew by 8.8% to Rs 2,469.29 crore (previous year Rs 2,268.63 crore), while net profit more than doubled to Rs 451.30 crore (previous year Rs 209.47 crore).

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